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The Ott Group, Inc., has identified the following two mutually exclusive projects Year Cash Flow (S) Cash Flow (L) S12,500 4,000 5,000 6,000 1,000 $12,500

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The Ott Group, Inc., has identified the following two mutually exclusive projects Year Cash Flow (S) Cash Flow (L) S12,500 4,000 5,000 6,000 1,000 $12,500 1,000 6,000 5,000 4,000 4 a. What is the IRR for each of these projects? If the cost of capital is 11 percent, which project should the company accept? Why? b. If the required return is 11 percent, what is the NPV for each of these projects? Which project should the company choose? Why

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